Daniels: State fiscally solvent

Governor says Indiana better off than many others facing slumping national economy.

Governor says Indiana better off than many others facing slumping national economy.

November 06, 2008

INDIANAPOLIS (AP) -- Republican Gov. Mitch Daniels jumped into his second term Wednesday, meeting with Cabinet members to discuss Indiana's fiscal condition a day after winning re-election. Daniels said the state is better off than many others struggling in the slumping national economy, but he warned that Indiana needs to be even more frugal and careful with spending so it can preserve revenues. "It's more likely to get worse than better," he said. Daniels, who soundly beat Democratic challenger Jill Long Thompson in Tuesday's election, has said that keeping the budget balanced amid economic turmoil will be among his top priorities. In his victory speech Tuesday night, Daniels told a crowd of cheering supporters that lawmakers should prepare for another busy four years. He said the state would move forward despite economic challenges. "We all know there's a tough patch ahead for us and all our sister states," Daniels said. "But this time around, if there's to be a recession, if there's to be a downturn, Indiana goes in not weak, but economically strong, not broke, but fiscally solvent. My fellow citizens, we will get through this tough period and we will come out the other end one of the great states of this country." Daniels and lawmakers balanced the budget during his first year in office, and the administration has taken more recent steps to help state government weather bad economic times. It spent $133 million less than was allocated in the last fiscal year, and agencies have been told to spend 7 percent less than they received for this fiscal year. Daniels won nearly 58 percent of the vote to beat Long Thompson on Tuesday. He had outspent Long Thompson by millions and had run television commercials nonstop since March, even though he did not have a primary opponent. Long Thompson's primary battle turned bitter against Indianapolis architect Jim Schellinger, and her lack of cash kept her off the air for many weeks during the general election campaign. "He (Daniels) got out early and he inoculated himself and presented a real positive image of himself and the state, and by the time the Democrats settled internal disputes, he was already in a good position," said Robert Dion, a professor of American politics at the University of Evansville. Robert Schmuhl, a political analyst and University of Notre Dame professor, said Daniels follows a trend since the 1970s for Indiana governors to win a second term. "This year, Daniels didn't face a very difficult race in doing so," Schmuhl said. Now Daniels is focusing on the work ahead of him as governor. Daniels wants lawmakers to take the next step toward amending caps on property tax bills into the state constitution by passing a resolution approved last session a second time. Doing so would give voters the final say in a statewide referendum in the 2010 general election. Daniels also wants to give high school graduates from families earning less than $60,000 two years of free tuition at Ivy Tech Community college, or up to $6,000 over two years at another Indiana public or private school. Daniels had suggested that leasing the lottery could be one way to pay for the annual $50 million program. But he recently dropped that option after the U.S. Justice Department issued an opinion saying that states would violate federal law if they entered into long-term management agreements to operate their lotteries. Daniels has said there could be other alternatives to pay for the scholarship program.